Crude runs higher on overnight strikes

April 7, 2017 11:49 AM

With the overnight news of the strikes in Syria by U.S. military, markets reacted rapidly. Gold and oil shot higher, while U.S. stocks dipped initially, only to rally back to nearly unchanged levels from yesterday's close. Crude oil has staged a very good rally during the past two weeks. It ran into key resistance at the $53 per barrel area. The $55 area should be very formidable resistance. The technicals are starting to turn up on the daily chart.

The U.S. dollar is up again today, moving in a similar pattern recently as crude oil. We believe the U.S. dollar is in an overall bullish trend and will continue higher this year, possibly to 105. 

Gold shot above the key "double top" level I mentioned earlier this week.

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